1.1.1 Rule =
Application.=20
These rules apply only to those positions and employees of the Montana=20
University System that are subject to the Montana University System =
Staff=20
Compensation Plan. These rules do not apply to student employees, =
faculty, coaches, individuals hired through professional =
employment=20
contracts or letters of appointment.

1.1.2 Part-time =
Employees.=20
Part-time employees working less than half-time (.5 FTE) and temporary =
employees=20
not covered by a collective bargaining agreement are generally excluded =
from=20
this policy unless otherwise determined and set forth in policy by the =
campus=20
Human Resource/Personnel office.

1.2 Effect=20

1.2.1 Effective =
Date. These=20
rules are effective upon approval and adoption by the Commissioner of =
Higher=20
Education. The effective date is the date the Commissioner signs these =
rules.=20

1.2.2 Changes. =
These rules=20
may be changed as deemed necessary by the Commissioner of Higher =
Education.=20
There is no vested right to any benefit or practice established under a =
prior=20
rule or regulation.

1.2.3 Collective =
Bargaining=20
Unit. For employees in a collective bargaining unit, these rules shall =
be=20
followed unless they are in clear contradiction to provisions of the =
collective=20
bargaining agreement, in which case the collective bargaining agreement=20
prevails. Any such contradictions shall be referred to the Director of =
Labor=20
Relations and Human Resources in the Office of the Commissioner of =
Higher=20
Education office for a final determination.

2.0 =
Compensation=20
Structure

2.1 Job Titles=20

Each position is =
assigned=20
to a job title by the UM/MSU Personnel/Human Resource Offices based on a =
comparison to the Standard Occupation Code (SOC) definitions used in the =
Occupational Employment Statistics (OES) survey published by the U.S. =
Department=20
of Labor, along with a comparison to other similar positions in the =
Montana=20
University System.

2.2 Hiring Range=20

A hiring range is =
established by the UM/MSU Personnel/Human Resource Offices for each job =
title=20
that shall include both a minimum entry rate (low entry) and a maximum =
entry=20
rate (high entry). The Commissioner=92s of Higher Education designee =
shall give=20
final approval of hiring ranges. For some job titles, the low entry is =
the same=20
as the high entry. The Office of the Commissioner of Higher Education =
will=20
publish and maintain a list of job titles and hiring ranges (specifying =
low and=20
high entry) used in the Montana University System. Individual campuses =
may=20
publish only those positions that exist on the specific campus.

2.2.1 Low Entry =
Wage. The=20
low entry wage rate for each job title is established and updated on an=20
approximate biennial basis based OES date.

2.2.1.2 No low =
entry wage=20
is set at a rate less than $8.25 per hour.

2.2.2 High Entry =
Wage. The=20
high entry salary is the maximum salary that may be paid to a =
newly-hired=20
employee. It is determined based on how far the MUS low entry wage is =
from the=20
OES rate.

2.2.2.1 For job =
titles=20
where the MUS low entry wage is 100% or higher than the OES rate, the =
high entry=20
salary is 110% of the low entry wage. (Zone A)

2.2.2.2 For job =
titles=20
where the MUS low entry wage is from 95% to 99% of the OES rate, the =
high entry=20
salary is 115% of the low entry wage for that job title. (Zone B)=20

2.2.2.3 For job =
titles=20
where the MUS low entry wage is from 90% to 94% of the OES rate, the =
high entry=20
salary is 120% of the low entry wage for that job title. (Zone C)=20

2.2.2.4 For job =
titles=20
where the MUS low entry wage is from 85% to 89% of the OES rate, the =
high entry=20
salary is 125% of the low entry wage for that job title. (Zone D)=20

Newly-hired =
employees shall=20
normally be paid no less than the low entry wage established for each =
job title.=20

2.3.1 Hiring =
Authority. A=20
hiring authority may offer an applicant who does not have all of the =
required=20
knowledge, skills, abilities or experience a wage that is less than the =
low=20
entry wage for the job title. In such instances the newly-hired =
employee's wage=20
shall be set at a rate no less than 90% of the low entry wage =
established for=20
the job title. Typically when an employee is hired for less than the low =
entry=20
wage, the employee is placed on a training assignment that provides for =
a wage=20
increase upon completion of a specific set of requirements. Each campus =
shall=20
determine the administrative approvals required to pay a newly-hired =
employee=20
less than the low entry wage.

2.3.2 High Entry =
Salary.=20
The high entry salary is the maximum wage rate that normally may be paid =
to a=20
newly-hired employee.

2.3.3 Hiring =
Authorities.=20
Hiring authorities may not pay a newly-hired employee a higher entry =
wage rate=20
than the base salary being paid any other employee with the same job =
title on=20
the campus at which the vacancy exists. Exceptions will only be =
permitted when a=20
higher salary is necessary to fill the vacancy and only when the =
newly-hired=20
employee has demonstrably greater qualifications than any lower paid =
employee in=20
the same job title. The evaluating "demonstrably greater qualifications" =
consideration should be given to directly relevant education and/or =
experience=20
both within the Montana University System and external to the University =
System.=20

2.3.4 Salary =
Flexibility.=20
If additional salary flexibility beyond the high entry for the job title =
is=20
deemed necessary to fill a vacancy because an open recruitment failed to =
attract=20
a qualified applicant or there is a history of failed job searches for =
the job=20
title, strategic pay may be requested.

2.4 Wage Rate for =
Employees=20
Changing Job Titles

When an employee =
accepts a=20
new position with a different job title, the employee=92s new base wage =
rate shall=20
be calculated according to the following criteria. =

2.4.1 If the new =
position=20
to which the employee is transferring has a low entry rate of pay that =
is at=20
least 50 cents higher than the low entry rate of the employee=92s =
current=20
position, the transfer shall be considered a promotion. =

2.4.2 In the case =
of a=20
promotion, the employee=92s base wage will be increased by 9% or the low =
entry of=20
the new position, whichever is greater.

2.4.3 In unusual=20
circumstances when it is necessary to pay a promoted employee a rate =
higher than=20
that established by Section 2.4.2, new hire provisions set forth in =
2.3.3 and=20
2.3.4 may be utilized.

2.4.4 If the new =
position=20
to which an employee is transferring has a low entry rate of pay that is =
at=20
least 50 cents lower than the low entry of the employee=92s current =
position, the=20
transfer shall be considered a demotion. The employee=92s new rate of =
pay shall be=20
established at a rate in accordance with 2.3.2, 2.3.3, and 2.3.4 of this =
policy.=20

2.4.5 If an =
employee=20
transfers to a new position with the same job title and/or substantially =
the=20
same low entry rates, the employee's base rate of pay will be=20
maintained.

2.5 Temporary =
Promotion=20

Temporary =
promotions may be=20
utilized in response to organizational changes including but not limited =
to:=20
reorganization, receipt of a new or expanded grant, or a temporary =
vacancy. The=20
appropriate rate of increase in the event of a temporary promotion shall =
normally be between 5% and 9% depending upon the scope and complexity of =
additional duties and responsibilities assigned.

2.6 Approvals and =
Justification Required

Hiring =
authorities must be=20
sensitive to potential problems that may result if a newly-hired =
employee is=20
paid a higher wage than a longer-term employee. Sometimes this is =
necessary and=20
justifiable in the event of serious recruitment and retention problems =
or if the=20
newly-hired employee has unique skills that are needed in the =
department. Before=20
approving an entry wage rate for a newly-hired employee that is higher =
than the=20
base wage paid a current campus employee in the same job title, the =
wages and=20
length of employment of other campus employees with the same job title =
must be=20
reviewed in order to identify any potential inequities that may be =
present. The=20
rationale for paying a newly-hired employee a higher wage must be =
justified in=20
writing. A proposal for addressing any perceived inequities that may =
result from=20
this request shall be included in the justification.

If a hiring =
authority proposes to offer a wage that is higher than the wage paid a =
current=20
employee in the same job title on the same campus, additional =
administrative=20
approvals are required. The approval process shall be established at =
each=20
campus.

3.0=20
Across-The-Board Pay Increases

3.1 Amount and =
Effective=20
Date

The amount and =
effective=20
dates are determined by Board of Regent policy and through the =
collective=20
bargaining process.

3.2 Eligibility=20

3.2.1 Permanent =
employees=20
hired prior to the effective date of the salary increase are eligible to =
receive=20
the Across-the-Board salary increase.

3.2.2 Temporary =
employees=20
hired for a period of less than four (4) consecutive months are not =
eligible for=20
the Across-the-Board salary increase.

3.2.3 Temporary =
employees=20
hired for four (4) or more consecutive months may or may not be eligible =
for=20
Across-the-Board salary increases as determined by each campus and any=20
applicable collective bargaining agreement.

4.0 =
Strategic=20
Pay

Permanent =
employees covered=20
by this policy who have completed their probationary period may be =
eligible for=20
retention and newly-hired Strategic Pay. The award of Strategic Pay is =
at the=20
employer's discretion pursuant to approval criteria. There is no =
entitlement to=20
Strategic Pay. In order to be eligible for Strategic Pay, the employee =
must have=20
a current Role Description and Performance Plan. The employee must have =
no=20
active formal disciplinary action and must have received a Met or =
Exceeded=20
Expectations rating on the most recent Performance Development Review. =
Employees=20
are only eligible for Strategic Pay if a current Performance Plan and a=20
Performance Review indicating a rating of Met or Exceeded Expectations =
for the=20
most recent performance development cycle are submitted with the =
request.=20

4.1 Criteria=20

Strategic Pay may =
be=20
awarded at the discretion of the employer, pursuant to approval =
criteria, in the=20
following circumstances:

4.1.1 To retain =
an employee=20
with unique knowledge, skills, or abilities that are critical or vital =
to the=20
achievement of the University's or department's mission or strategic =
goals when=20
the employee's resignation would have a significant adverse impact on =
the=20
accomplishment of critical and time-sensitive projects or when such =
employee has=20
received a more lucrative job offer or otherwise presents compelling =
evidence of=20
his/her marketability; or

4.1.2 To mitigate =
problems=20
with recruitment and retention when it can be documented that such =
problems are=20
related solely to noncompetitive salary levels; or =

4.1.3 To some or =
all=20
current employees performing the same work under the same working =
conditions=20
requiring the same level of knowledge, skill, or ability in order to =
resolve=20
inequities created when it was necessary to pay a newly-hired employee a =
higher=20
salary than current employees with equal or greater qualifications and=20
performance; or

4.1.4 To =
compensate an=20
employee who is required to perform a job under unique working =
conditions that=20
have resulted in documented recruitment and retention problems.=20

4.1.5 The fact =
that=20
Strategic Pay is granted to one or more employees on the same or another =
campus=20
or in the same or another department may not be used as justification =
for=20
additional Strategic Pay requests.

4.2 Types and =
Amounts=20

4.2.1 Type. =
Strategic Pay=20
may be a permanent or temporary base adjustment. Strategic Pay may also =
be a=20
one-time or periodic bonus that is not added to an employee's base.=20

4.2.2 Amount. The =
amount of=20
Strategic Pay is determined by the employer pursuant to approval =
criteria.=20
Factors to consider when determining Strategic Pay amounts include but =
are not=20
limited to: the employee's job-related qualifications (experience, =
knowledge,=20
skills, abilities, and performance); OES salary survey; salary survey =
data from=20
the local community; recruitment and turnover statistics; existing =
salary=20
relationships within the campus and work unit; the effect that the award =
of=20
Strategic Pay will have on the morale, productivity and overall =
operation of the=20
campus and the work unit; and budget availability and constraints.=20

4.3 Approval and =
Reporting=20

4.3.1 Strategic =
Pay for=20
Individual Employees. Strategic Pay requests for individual employees =
must be=20
submitted in writing to the campus Human Resources Director by the =
Dean/Director=20
of the Department with evidence that the request is supported by the=20
Dean's/Director's supervisor(s) including the appropriate Vice =
President, Vice=20
Chancellor or Executive Officer. The written request must include =
justification=20
that explains in detail the purpose and amount of Strategic Pay =
requested and=20
must address all of the applicable factors listed in section 4.2.2. The =
source=20
and availability of the funds to be used for Strategic Pay must also be=20
identified in Strategic Pay requests.

4.3.1.1 The =
campus Human=20
Resource Office shall conduct an independent analysis of salary survey,=20
recruitment, and turnover statistics; compile and analyze any additional =
information considered beneficial; and determine whether there is =
sufficient=20
justification for the request. If the strategic pay request is for the =
purpose=20
of mitigating problems with recruitment and retention, the campus Human =
Resource=20
Office must verify that the requesting department's recruitment and =
retention=20
problems are substantially greater than those encountered in other =
departments=20
and that the department's recruitment and retention problems are related =
solely=20
to noncompetitive salary levels.

4.3.1.2 Upon =
approval of a=20
request for Strategic Pay by the campus Human Resource Office, the =
request shall=20
be submitted to the campus Chief Executive Officer (CEO) for final =
approval.=20
Additional approvals may be required as determined by the appropriate=20
President/Chancellor.

4.3.1.3 Each =
campus shall,=20
by August 1 of each year, submit a report to the Commissioner of Higher=20
Education, which includes the names and job titles of all individuals =
who=20
received Strategic Pay in the prior fiscal year and the amount, type and =
purpose=20
of Strategic Pay.

4.3.2 Strategic =
Pay for=20
Multiple Positions. Strategic Pay requests to cover more than one =
employee=20
holding the same job title must be submitted in writing in the same =
manner as=20
required for individual Strategic Pay requests. When such pay requests =
have been=20
approved by the same individuals who must approve individual Strategic =
Pay=20
requests, the original request including all required approvals shall be =
submitted to the Commissioner of Higher Education. The Commissioner =
shall=20
forward the request to all other campuses with employees assigned the =
same job=20
title in order to provide an opportunity for comment on the proposal. If =
the=20
Strategic Pay is to cover employees in a bargaining unit, the bargaining =
agent=20
shall also be notified and given an opportunity to comment on or object =
to the=20
proposed implementation of Strategic Pay. The Commissioner shall approve =
the=20
request for Strategic Pay unless opposed by the bargaining agent, =
another=20
campus, or otherwise considered not in the best interest of the =
university=20
system.

5.0 =
Progression=20
Pay

5.1 Definition=20

5.1.1 Progression =
pay is=20
awarded when an employee has advanced to the next step of a pre-approved =
Career=20
Ladder. A position vacancy notice is not required in order for an =
employee to=20
progress within a Career Ladder. Career Ladders are not available for =
all=20
positions, or for all employees.

5.1.2 There are =
two=20
requirements for Progression Pay:

a. The department =
must have=20
an operational need for the higher level work; and =

b. The employee =
must be=20
interested in the higher level work and must have demonstrated the =
potential to=20
attain the necessary skills to perform it successfully. =

5.2 Eligibility=20

5.2.1 Permanent =
full-time=20
and part-time employees who have successfully completed their =
probationary=20
periods are eligible for Progression Pay if all other criteria are met. =
The=20
employee must have no active disciplinary actions and must have a =
current Role=20
Description and Performance Plan, in addition to having received a Met =
or=20
Exceeded Expectations rating on the most recent Performance Review. =
Temporary=20
and fixed-term employees are not eligible for Progression Pay.=20

5.2.2 The primary =
criterion=20
for advancement through a pre-approved Career Ladder is whether the =
department=20
needs someone to perform more complex duties and responsibilities.=20

5.3.2 Individual =
Career=20
Ladders may be used for progressions where no Job Series Career Ladder =
exists.=20
For example, an Individual Career Ladder may be developed for an =
employee who is=20
an Administrative Associate and is going to move into a more computer=20
support-related role in order to fill a departmental need for technical =
support.=20
The supervisor, employee, and Human Resources representative analyze the =
progression and distinguishing characteristics of the current and =
proposed=20
higher level work and develop a Progression Plan.

5.4 Procedures =
for=20
Development

Step 1:=20
Employee and=20
supervisor agree that a Career Ladder is appropriate. =

Step 2:=20
Supervisor=20
completes a Progression Plan form, and any other forms required by the =
campus,=20
requesting approval by department head for either: =

Human Resource=20
representative is available to provide assistance in designing an =
Individual=20
Career Ladder and in completing the form.

Step 3:=20
Each =
request=20
shall include a proposed timeline for the employee's acquisition of the=20
necessary skills and knowledge. Each step of a Career Ladder typically =
requires=20
approximately six (6) months to one (1) year for completion. The length =
of time=20
required is based on:

a. the time it =
will take=20
the employee to attain the qualifications, knowledge, skills, and =
abilities=20
required by the higher level work and the time it will take the employee =
to=20
demonstrate effectiveness at the higher level; and =

b. the time it will take =
the=20
department to develop the need for the higher-level responsibilities.=20

Step 4:=20
Employee,=20
immediate supervisor, and the Dean/Director must sign the Progression =
Plan form.=20
The campus Human Resources Office must also review, approve and sign the =
form.=20

5.5 Amount=20

5.5.1 Progression =
Pay is an=20
increase to the base salary, which is awarded when the employee =
completes each=20
level of an approved Career Ladder and the department has developed the =
need for=20
the higher level responsibilities, as outlined in the Progression Plan.=20

5.5.2 Salary =
increases will=20
be based on the additional qualifications required and increased=20
responsibilities assigned.

5.5.2.2 The =
effective date=20
of the progression pay salary shall be specified in the progression plan =
but may=20
be delayed if progression plan criteria have not been met. Progression =
pay may=20
be implemented in one increment of 9% upon completion of the progression =
plan or=20
may be implemented in up to three proportionate (but not compounded) =
increments.=20

5.5.4 A=20
Progression Pay salary increase will not be justification for a salary=20
adjustment for other employees employed with the same job title within =
the=20
University.

6.0 =
In-Range=20
Progression Pay

6.1=20
Definition

In Range =
Progression Pay is=20
awarded when there is an increase in an employee=92s knowledge, skills, =
duties,=20
and responsibilities within his or her job title and management has =
identified a=20
need for the higher level responsibilities.

6.2 Eligibility=20

Permanent =
full-time and=20
part-time employees who have successfully completed their probationary =
period=20
are eligible for In-Range Progression Pay if all other criteria are met. =
The=20
employee must have no active disciplinary actions and must have a =
current Role=20
Description and Performance Plan, in addition to having received a met =
or=20
exceeded expectations rating on the most recent Performance Review. =
Temporary=20
and Fixed Term employees are not eligible for In-Range Progression Pay.=20

Step=20
3: =
Employee,=20
immediate supervisor, and the Dean/Director must sign the In-Range =
Progression=20
Plan form. The campus Human Resources Office must also review, approve, =
and sign=20
the form

Step=20
4: =
The campus=20
Human Representative and administrative official should work together in =
partnership to determine the appropriate and most effective use of =
in-range=20
progression pay.

6.5 Amount=20

In-Range =
Progression Pay is=20
an increase to the base salary, which is awarded when approved through =
the=20
appropriate administrative officials on each campus, including Human =
Resources.=20
The amount of the increase shall not exceed four (4) percent of the base =
salary=20
of the employee.

7.0 Lump =
Sum=20
Bonuses

7.1 Definition=20

A Lump Sum Bonus =
(not added=20
to employee's base salary) may be awarded to an employee when that =
employee has=20
exhibited exemplary service or contribution to the University. The award =
of a=20
Lump Sum Bonus is at the employer's discretion. There is no entitlement =
to a=20
Lump Sum Bonus and it is up to the employer to advance such a request. =
Lump Sum=20
Bonuses may be given in the following increments: $100, $200, $350, =
$500, $750,=20
or a maximum $1,000.

7.2 Eligibility=20

7.2.1 Permanent =
employees=20
who have successfully completed their probationary period and are =
assigned to a=20
position covered by the MUS SC & PDP may receive a Lump Sum Bonus =
upon the=20
recommendation of their supervisor if the job performance criteria are =
met.=20

7.2.2 Employees =
must have=20
no active formal disciplinary action, must have a current Role =
Description and=20
Performance Plan, and must have received a Met or Exceeded Expectations =
rating=20
on the most recent Performance Review. Temporary and fixed-term =
employees are=20
not eligible for Lump Sum Bonuses.

7.3 Criteria=20

The following =
performance=20
criteria shall be used in making requests for Lump Sum Bonuses: To =
qualify for a=20
Lump Sum Bonus, the employee must have demonstrated exceptional =
performance in=20
the following criteria: 1A and 1B and 1C, PLUS meet ONE of the =
additional=20
criteria: 2A or 2B or 2C or 2D or 2E.

1A.=20
Effort.=20

The effort of =
work greatly=20
exceeds expectations. The work produced a positive, significant effect =
for the=20
University. The service, project, or product clearly demonstrates an =
extra=20
effort put forth by the employee.

- AND -=20

B. Consistency=20

In order to be =
eligible for=20
a bonus, an employee must maintain a consistent level of satisfactory or =
higher=20
job performance on a recurring basis over a significant period of time. =
The=20
effort required to accomplish the =
extraordinary project=20
or product is of noteworthy duration and the exceptional/superior =
service is=20
consistently applied.

a. If approved by =
the=20
campus Human Resource Office and no other approvals are required, the=20
Dean/Director will be notified of such approval, and the request will be =
submitted for processing of the payment.

b. If denied by =
the campus=20
Human Resources Office, the immediate supervisor and Dean/Director will =
be=20
notified of the denial and reason(s) for such denial. =

c. If approved by =
the=20
campus Human Resource Office and all others required by campus policy, =
the=20
signed form shall be forwarded to the appropriate Vice President, Vice=20
Chancellor or executive officer and campus CEO. If approved, the form =
shall be=20
returned to the campus Human Resource Office in order to process the =
payment. If=20
denied, the Vice President, Vice Chancellor or other appropriate =
executive=20
officer and campus CEO will notify the campus Human Resource Office of =
the=20
reason(s) for the denial. In either case, the campus Human Resource =
Office will=20
notify the supervisor and Dean/Director of approval or denial of the =
request and=20
the reason for denial, if applicable.

Step 5:=20
Upon =
receipt=20
of all required approvals and submission for payment, the Lump Sum Bonus =
shall=20
be processed as soon as reasonably possible. The campus Payroll/Human =
Resource=20
Office shall determine whether the Lump Sum Bonus will be issued as part =
of the=20
regularly scheduled paycheck or as a special check. =

7.5 Approval =
Requirements=20

7.5.1 Campus =
Discretion.=20
Campuses may establish their own signature procedures that would require =
signatures in addition to those specified below.

A request for a =
Lump Sum=20
Bonus may be denied by the Dean/Director, Vice President or Chancellor, =
Chief=20
Executive Officer, or campus Human Resources Director. If denied, the =
employee's=20
immediate supervisor will be provided an explanation of such denial.=20

Denials of Lump =
Sum Bonus=20
requests may not be appealed or grieved.

7.7 Lump Sum =
Report=20

Each campus =
shall, by=20
August 1 of each year, submit a report to the Commissioner of Higher =
Education=20
which includes the names, job titles and amount and purpose of all =
employees who=20
received lump sum bonuses in the prior fiscal year. =